Concept explainers
Greg Davis, a business major at the University of Smith Carolina (USC), has opened Six Points Saco (SPS), a specialty subs—taco restaurant, at the rim of the IJSC cam pus. SPS has grown in popularity over the first year that it has been in operation, and Greg is trying to perfect the business model before making it into a franchise. He wants to maximize the productivity of his staff, as well as serve customers well in a timely fashion. One area of concern is the drive-thru operation during the 11:30 A.M. to 12:30 P.M. lunch hour.
The process of fulfilling an order involves fulfilling the tasks listed in the table.
Greg is interested in getting a better understanding of the staffing patterns that will be needed to operate his restaurant. After taking a course in operations management at the university, he knows that fulfilling a customer order at SPS is very similar to operating an assembly line. He has also used the POM for Windows software before, and wants to apply it for examining different demand scenarios for serving his customers.
- If all the seven tasks are handled by one employee, how many customers could be served per hour?
- If Greg wants to process 45 customers per hour, how many employees will he need during the peak period?
- With the number of employees determined in part (b), what is the maximum number of customers who could be served every hour (i.e., what is the maximum output capacity)?
- Assuming that no task is assigned to more than one employee, what is the maximum output capacity from this assembly line? How many employees will be needed to actually accomplish this maximum output capacity?
- Beyond the output accomplished in part (d), if Greg decides to add one additional worker to help out with a bottleneck task, where should he add that worker? With that addition, would he be able to process more customers per hour? If so, what is the new maximum output capacity for the drive-thru?
Want to see the full answer?
Check out a sample textbook solutionChapter 5 Solutions
Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
Additional Business Textbook Solutions
Operations Management, Binder Ready Version: An Integrated Approach
Operations Management
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations and Supply Chain Management 9th edition
Business in Action (8th Edition)
- As Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product…arrow_forwardAs Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product…arrow_forwardAs Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product…arrow_forward
- As Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product…arrow_forwardAs Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product…arrow_forwardAs Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product…arrow_forward
- As Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product…arrow_forwardAs Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product…arrow_forwardE-Education is a new startup that develops and markets MBA courses offered over the Inter-net. The company is currently located in Chicago and employs 150 people. Due to strong growth, the company needs additional office space. The company has the option of leasingadditional space at its current location in Chicago for the next two years, but after that willneed to move to a new building. Another option the company is considering is moving theentire operation to a small Midwest town immediately. A third option is for the company tolease a new building in Chicago immediately. If the company chooses the first option andleases new space at its current location, it can, at the end of two years, either lease a newbuilding in Chicago or move to the small Midwest town. The following are some additional facts about the alternatives and current situation:1. The company has a 75 percent chance of surviving the next two years.2. Leasing the new space for two years at the current location in…arrow_forward
- Rare Agri-Products Ltd. is considering a new project with a projected life of seven (7) years. The project falls under the government’s subsidy program for encouraging local agricultural products and is eligible for a one-time rebate of 25% on any initial equipment installed for the project. The initial equipment (IE) will cost $41,000,000. An additional equipment (AE) costing $3,500,000 will be needed at the end of year 3. At the end of seven (7) years, the original equipment, IE, will have no resale value but the supplementary equipment, AE, can be sold for $50,000. A working capital of $1,350,000 will be needed. The project is forecast to generate sales of agri-products over the seven years as follows: Year 1 70,000 units Year 2 100,000 units Years 3-5 250,000 units Years 6-7 325,000 units A sale price of $150 per unit for the first two years is expected and then decline to $90 per unit thereafter as the newness of the product loses some sheen. The variable expenses will amount to…arrow_forwardKlumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rate $ 11 per direct labor-hour $5 per machine-hour $50 per setup $ 150 per order $ 110 per shipment $ 900 per product Activity data have been supplied for the following two products Total Expected Activity Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments K425 M67 200 2,000 1,150 50 2,800 40 19 2 19 38 2 2 Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead costarrow_forwardA battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm must now adjust the pH and remove the mercury from its waste liquids. Quotations from three firms are included in the following table of costs. Bidder Installed Cost Annual Operating Cost Annual Income from Mercury Recovery Salvage Value Foxhill $ 70,000 $5000 $6500 $10,000 Instrument Quicksilver 50,000 5000 2500 0 Almaden 90,000 5000 7800 10,000 If the installation will last 15 years and money is worth 12%, which equipment should be purchased?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.